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The U.S. Bureau of Labor Statistics estimated that "in August 2010, 93,000 workers spent more than half of their work hours on projects related to solar power." A number of these jobs were created because of the potential of selling excess power to the grid. Other green and traditional energy resources lend themselves to this as well. Many states have mandated purchasing a number of energy "credits" from alternative fuel distributors to begin to reduce the United States' dependency on foreign fuels. With these concepts in mind, income potential exists for a business created especially to produce power for this purpose.

1.

Determine your proposed method of production for your energy, whether it is from a renewable source such as solar or wind power or a nonrenewable source such as oil. The scope and scale of your business largely depends on your supply, so be certain you have adequate quantities for now and for later expansion.

2.

Write a detailed business plan thoroughly discussing your production methodology, expansion plans, business entity type, investments and other industry and nonindustry plans. Use this document to apply for financing and for government and private grants to fund your operation.

3.

Apply for an Employer Identification Number at the IRS website so you can hire employees and establish a business checking account. Apply for a business permit and state sales tax license at the Secretary of State's office in your state. Discuss other applicable energy production permits with this office as well.

4.

Contact your local Department of Energy field office to apply for any applicable permits regarding your resource. Some permits may require substantial investigation including an environmental impact and feasibility studies.

5.

Apply for any government and private grant that is relevant to your industry. Search specifically for green grants as the present governmental focus on renewable and clean power has provided many opportunities in this realm.

6.

Inquire about "Renewable Energy Certificate" or "Tradable Renewable Certificate" requirements in your state. Many states have now mandated that they purchase a certain percentage of power from clean or renewable sources. Utilize this data as you negotiate your energy sales price.

7.

Negotiate your per-megawatt energy sales rates with the local power provider before beginning production to be sure the return on investment justifies your sales. You may be required to provide a minimum amount of power to receive your negotiated rate.

8.

Produce your power. The Departments of Natural Resources, Energy and Homeland Security will monitor your operation. Learn compliance with these departments as well as other industry-specific laws. Hire an employee with a Certified Information Systems Security Professional certification to verify your compliance with these and other laws to avoid penalties.

Things Needed

Energy production method

Applicable permits

Tip

Consider the possibility of a national "Cap and Trade" program that emulates the energy credit programs that already exist in many states in your future expansion plans.

Warnings

Ignorance of federal and state regulations regarding your industry does not serve as an excuse. Study the industry and its laws and hire experienced employees.

Contact your insurer to verify you are adequately covered with liability and errors and omissions products.